Free Economic Zones in Belarus

Belarus’s determination to improve its enterprise climate is exemplified by its six Free Economic Zones (FEZs).

Free Economic Zone - overview

These zones were set up to create strong private sector enterprise and investment in Belarus and offer an enviable array of incentives to members, whether they are local entrepreneurs or foreign investors.

Registered businesses wanting to register with a FEZ must make a minimum investment of 1m, but receive the following benefits:

• Tax free profits on all goods and services for five years, then a 50% discount

• 50% discount on VAT on import substitution goods manufactured within an FEZ

• No taxes on real estate owned or leased in the FEZ

• Exempt from payments to National Agriculture Support Fund

• No tax on purchasing vehicles

• No customs duty on raw materials and equipment imported from outside Belarus

• A guarantee that legislation governing firms will not change for seven years

Each FEZ has its own administrative officers to help members and, in all, joining an FEZ confers a 40% reduction in the tax burden compared non-membership. So far almost 270 foreign businesses have taken advantage of the opportunity.

The first FEZ was set up in 1996 in Brest, in the south west of Belarus, near the Polish border, and now six zones are strategically located around the country - in Minsk, Gomel, Vitebsk, Grodno, Brest and Mogilev.